Starting a bookkeeping business does not require a massive investment (I invested $9k into My CFO and paid my loan back in full within a year), a full team (I hired employees within months of launching because I didn’t want to do the daily coding), or years of preparation (no fancy degrees needed). It requires a few key tools, and a willingness to get started before you feel ready (yay imposter syndrome).
Here are the nine things you actually need:
- Laptop
This is your office. You can have a desktop as well or instead. I like to travel so I keep a laptop. Also, I live with a disability and am always moving locations of what feels comfortable, which you cannot do with a desktop. You do need it to be fast enough to run accounting software, hold zoom meetings, and manage client work efficiently. - Internet
Consistent, secure internet is non-negotiable. Your entire business will rely on your ability to access client data, communicate, and work in real time. This could be wifi or a hotspot. Do not use public access though, which sets you up to be hacked, and therefore, your clients will also be hacked. - Cell Phone
Your clients need to be able to reach you. Whether it is calls, texts, or app-based communication, accessibility builds trust early on. Plus, you can add on your internet hot spot, making it so you can travel anywhere and work at any time. - Bookkeeping Certifications
You need to understand the fundamentals. Certifications help build your confidence and credibility, especially in the beginning when you are still finding your voice. Those debits and credits are confusing and it is SO IMPORTANT to know how to set up a chart of accounts accurately for each of your clients. - QuickBooks Certification
Most small businesses run on QuickBooks. Being certified positions you as a professional and gives your clients confidence that you know the system they are already using. Plus, depending on the type of QuickBooks certification you have, you will be granted better customer service and accountant tools. - Business License
Operate legally from the start. This step is simple but important, and it sets the foundation for running a legitimate business versus a side hustle. - EIN / Tax ID Number
Separate your personal identity from your business. This is essential for taxes, banking, and building a real company. It also helps you from putting your social security number out there come tax time. Plus, if you are planning on hiring employees, you’ll need a tax id number from your state and federal governments. - Separate Business Bank Accounts
If you are teaching clients financial clarity, you need to model it. Separate business bank accounts create structure, discipline, and clean financial tracking from day one. It is an awful business practice (and illegal) to co-mingle funds. Once you get audited, you remain on a watch list. - Mentor
This is the one most people skip, and it is the one that will accelerate everything for you. A mentor shortens your learning curve, helps you avoid costly mistakes, and gives you the confidence to move faster. There is nothing better or more soothing for your soul than when your mentor tells you a situation is normal and offers you peace of mind AND solutions (I am happy to be your mentor ;P)
Final Thoughts From Your Favorite Accountant
Mostly, all it takes for you to launch your bookkeeping business is to start. Start small if money is an issue. Keep it a side hustle until you can get these 9 things in place, and then watch how you grow exponentially!
Because at the end of the day, cash flow isn’t luck, it’s strategy.
